MUMBAI: The Indian mutual fund industry has recently shown remarkable resilience and growth, as illustrated by the significant rise in Systematic Investment Plan (SIP) inflows.
A report by Motilal Oswal indicates that SIP inflows surged by an impressive 39 per cent year-on-year in November, reaching a total of Rs25,320 crore. The robust performance is indicative of strong retail investor participation, reinforcing the vibrancy of the sector.
In the same vein, the assets under management (AUM) have now exceeded Rs68 lakh crore, marking a 48 per cent increase over the past year. The impressive growth in AUM reflects not only the rising confidence of investors but also underscores a shift in investment behavior as more individuals gravitate towards mutual funds.
Notably, SIP contributions have begun to surpass non-SIP flows, showcasing a 48 per cent growth rate compared to merely 12 per cent in the non-SIP category. This trend, coupled with SIP contributions constituting approximately 2 per cent of total mutual fund inflows, signals a robust acceptance of systematic investment practices among Indian investors.
Analyzing the composition of the mutual fund sector reveals that equity mutual funds now account for 45 per cent of the total AUM, with their value witnessing an annual increase of 50 per cent.
The total equity AUM has risen to Rs30 lakh crore, reflecting a steady monthly growth rate of 3 per cent. Despite experiencing some redemptions—approximately 42 per cent of monthly flows—investor enthusiasm in equity markets remains steadfast, evidenced by increased folio numbers across all equity categories, particularly in mid-cap funds, which alone added over 600,000 new folios in November.
